Ethelbert Uzodinma Nwosu V. First Bank Of Nigeria (2016)

LawGlobal-Hub Lead Judgment Report – COURT OF APPEAL

UZO I. NDUKWE-ANYANWU, J.C.A. (Delivering the Leading Judgment)

This is an appeal against the judgment of the High Court of Lagos State delivered on the 5th day of March, 2011 by Hon. Justice L.B. Lawal-Akapo.

The facts briefly stated are as follows;

By a letter dated October 11, 2007, the Respondent as Claimant at the Lower Court advanced a share purchase loan to the Appellant as Defendant in the sum of N8,000,000.00 [Eight Million Naira only] herein known as Facility 1 which tenure was for 12 months. Also, by a letter dated November 9, 2007, the Respondent advanced another share purchase loan to the Appellant in the sum of N16,000,000.00 (Sixteen Million Naira only) herein known as Facility 2 which tenure was also for 12 months.

Pursuant to the loan advancement, the Respondent and Appellant entered into a two share purchase loan agreements dated October 15, 2007 and November 14, 2007 covering both facility 1 and facility 2 respectively herein referred to as the Loan Agreements.

It is the case of the Respondent that by the terms of the Agreements, the Appellant agreed to repay the sum advanced under Facility 1 and

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Facility 2 by 12 equal monthly installments which was to fall due on the 28th day of each month commencing from November 28, 2007. He referred to the Appellant’s undated letter to the Respondent wherein the Appellant undertook to issue postdated cheques throughout the tenor of both Facility 1 and Facility 2. Also that the Appellant agreed to pay interest on both Facility 1 and Facility 2 at prevailing commercial rates as from the date of the loan facilities. It is the case of the Respondent that as at October 28, 2008 (the due date), the Appellant had failed to liquidate her indebtedness to the Respondent.

Consequently, the Respondent sent demand letters dated August 28, 2008; and March 25, 2009. But the Appellant failed to make payment and did not respond to the demand. Hence the Respondent instituted this suit at the Lower Court, by a Writ of Summon and Statement of Claim wherein, the Respondent claimed against the Appellant as follows:

‘(a) The sum of N34,501,211,06 (Thirty Four Million, Five Hundred and One Thousand, Two Hundred and Eleven Naira Six Kobo) being the outstanding balance on the various credit facilities granted to the Defendant by the

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Claimant in the course of its banking business and which sum the Defendant has failed to pay despite repeated demands.

(b) Interest on the said sum of N34,501,211.06 (Thirty Four Million, Five Hundred and One Thousand, Two Hundred and Eleven Naira Six Kobo) at the rate of 21% per annum from April 29, 2010 until the date of entry of final judgment in the action;

(c) Interest on the said sum of N34,501,211.06 (Thirty Four Million Five Hundred and One Thousand Two Hundred and Eleven Naira Six Kobo) at the rate of 10% per annum from the date of entry of final judgment in this action until the final liquidation of the judgment debt; and